Analysis of the impacts of Internet-based business activities on the container shipping industry : the system dynamics modeling approach with the framework of technological evolution

The internet-based business (e-business) activities have become a new technological challenge to the container shipping industry (CSI) in recent years. Despite the growing importance of e-business in the CSI, little systematic and theoretical research on e-business has been undertaken so far. This research therefore attempts to understand the potential impacts of e-business on the container shipping industry and to provide carriers with the managerial recommendations responding to the impacts of e-business. An integrated system dynamics model is developed to simulate the potential impacts of e-business on the container shipping industry and to explore the successful managerial strategies for carriers with regard to e-business. In order to increase the confidence of the model, the general business dynamics in the CSI are reviewed and the historical impacts of new technologies on the container shipping industry are analyzed using the framework of technological evolution. Furthermore, the technology strategies of six different e-business models in the CSI are evaluated using the proposed three frameworks to identify the most promising e-business model.